Mumbai : The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has unanimously decided reduce repo rates 25 basis 6.5 to 6.25 %. This is the first rate cut in nearly 5 years. Consequently the reverse Repo rate and CRR have been adjusted at 3.35% and 4.5%. The Marginal Standing facility (MSF) and Satnding Deposit Facility (SDF) have been revised at 6.5% and 6% respectively.
Real GDP growth for FY26 at 6.75%, Q1 at 6.7% Q2 7% Q3 & Q4 6.5 % each, Core inflation is expected to rise but remain moderate, CPI inflation for FY25 projected at 4.8% said RBI governor Sanjay Malhotra.
“The Monetary Policy Committee (MPC) held its 53rd meeting from February 5 to 7, 2025 under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Rajiv Ranjan, and Shri M. Rajeshwar Rao attended the meeting. After assessing the current and evolving macroeconomic situation, the MPC unanimously decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25 per cent with immediate effect; consequently, the standing deposit facility (SDF) rate shall stand adjusted to 6.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 per cent. The MPC has also decided to continue with the neutral monetary policy stance and remain unambiguously focussed on a durable alignment of inflation with the target, while supporting growth. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth” said the governor.